Thread: Goldman Sachs gives Barnes and Noble new $14 price target
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Old 04-16-2012, 11:53 AM   #6
Kali Yuga
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Quote:
Originally Posted by HarryT View Post
OK, thanks. I'm afraid the importance of this eludes me, but I'm sure it's of interest to some.
It means that an equity research analyst at Goldman Sachs is less confident in the value of B&N's stock. They cut the expected target price from $15/share to $14/share.

The analyst statement:

“We see risk to BKS from two sources: (1) Lower book prices could reduce gross margin in the ebook business, impeding an already precarious model (EBITDA losses through our forecast horizon). (2) Hastening the migration of book sales online, and away from the physical channel which, despite its secular challenges, is generating all of the firm’s free cash flow, and, in our view, most of its value.”
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